Forex - NZD/USD weekly outlook: October 4-8

Published 10/03/2010, 11:10 AM
NZD/USD
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Investing.com – Last week saw the New Zealand dollar surge to a fresh 11-month high against its U.S. counterpart on Friday, as concerns over faltering U.S. growth overshadowed worse-than-expected economic data from New Zealand.

NZD/USD hit 0.7461 on Friday, the pair's highest since November 19, 2009; the pair subsequently consolidated at 0.7438 by close of trade, advancing 1.04% over the week.

The pair is likely to find support at 0.7262, the low of September 23 and resistance at 0.7497, the high of November 18, 2009.

On Friday, senior Federal Reserve officials indicated that the bank would almost certainly have to provide fresh stimulus to the flagging U.S. economy.

Earlier in the week, official data showed that New Zealand's trade balance widened more-than-expected, while building consents fell more-than-expected, following the earthquake that hit the country in early September. 

Next week, the U.S. is due to release the closely watched ADP report on non-farm employment change ahead of Friday's government data on non-farm payrolls. In addition, the country is to release official data on initial jobless claims, manufacturing activity and pending home sales.

Meanwhile, New Zealand is due to produce key data on business confidence on Monday.
 
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect NZD/USD.

Monday, October 4


The U.S. is to start the week by releasing official data on pending home sales and factory orders, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

Meanwhile, New Zealand is to produce a report on business confidence, a leading indicator of economic health.

Tuesday, October 5

The U.S. is due to release official data on services sector growth, a leading indicator of economic health.

Wednesday, October 6

The U.S. is to release a report on ADP non-farm employment change. This data is viewed as an accurate prediction of the governments report on non-farm payrolls released two days later. Also Wednesday, the U.S. is to publish data on crude oil inventories.

Thursday, October 7


The U.S. is to release key weekly data on initial jobless claims as well as official data on consumer credit and natural gas inventories.

Friday, October 8

The U.S. is to end the week by producing data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of overall economic health.

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